Plutus PowerGen PLC Commissions First 20MW Energy Site in the UK (1909O)
03 November 2016 - 6:00PM
UK Regulatory
TIDMPPG
RNS Number : 1909O
Plutus PowerGen PLC
03 November 2016
Plutus PowerGen Plc / Ticker: PPG / Index: AIM
3 November 2016
Plutus PowerGen plc ('PPG' or 'the Company')
Successfully Commissions First 20MW Flexible Energy Site in the
UK
Plutus PowerGen plc, the AIM listed power company focused on the
development, construction and operation of flexible power projects
in the UK, is delighted to announce that it has successfully
brought its first power generation site in Plymouth into operation.
Attune Energy is now operating at full output.
This represents a transformational milestone for the Company,
acting as proof-of-concept in respect to PPG's strategy to become a
predominant player in the flexible energy generation market, and
providing the Company with immediate exposure to its revenue
streams, which are:
-- Short Term Operating Reserve (STOR)
-- Firm Frequency Response (FFR)
-- TRIAD
-- Merchant Power sales
The Plymouth site also holds a capacity mechanism contract for
15 years starting in 2019 and is pre-qualified for next year's 2017
capacity mechanism contract. Plymouth is one of nine sites held in
partnership with Rockpool Investments LLP ('Rockpool'), which has
provided EIS funding for their development. Rockpool also currently
pays management fees totalling GBP1.35 million per annum to PPG in
return for overseeing the construction of the assets and for
managing them on an ongoing basis.
Charles Tatnall, Executive Chairman of PPG said, "This is a
landmark event for PPG. Now that our first flexible energy facility
is operational, we look forward to increasing our sales
substantially as we tap into the multiple revenue streams available
to us over the coming months. These opportunities exist because
National Grid and the Big Six are in need of a consistent source of
power which blends with the intermittent supply currently being
delivered by renewables. By providing power at times of peak
demand, our projects will mitigate the risk of brown or blackouts
and as demonstrated by recent announcements that we now have
planning permission in place for seven projects, our portfolio is
progressing well."
Please see below for further information on the revenue streams
available to PPG:
Mechanism Overview Counterparty
------------------------------- ----------------------------------------------------------------- ------------------
STOR The Short Term Operating Reserve is a mechanism used by National Grid
National Grid to balance the UK's
power supply at short notice. The STOR allows required
electricity supply to be decreased
(by incentivising major consumers to reduce demand) or
increased, by calling on a pool of
stand-by power generators. Under the terms of two-year
contracts, National Grid pays STOR
providers for making their capacity available, as well as for
delivery of electricity.
------------------------------- ----------------------------------------------------------------- ------------------
Firm Frequency Response (FFR) FFR is a service procured by National Grid to manage system National Grid
frequency, the system-wide signal
that indicates whether energy supply exceeds demand or vice
versa. FFR allows a provider to
supply a service to reduce demand or increase generation, when
instructed by National Grid.
FFR is procured via monthly tender. To take part, generators
must be able to deliver a minimum
of 10MW, and be capable of responding within 30 seconds and for
sufficient duration. Similar
to STOR, providers are paid for availability as well as for
utilisation. PPG will compete
in the static market, whereby energy change occurs at a pre-set
frequency and remains at a
set level (as opposed to the dynamic market, where energy
changes in line with system frequency).
------------------------------- ----------------------------------------------------------------- ------------------
Triad Triad is the scheme under which the National Grid charges Energy Suppliers
energy suppliers significant sums
according to their use of the high voltage transmission network
during Triad periods - the
three half-hour periods of highest demand in a year, identified
after the winter. The principal
means for National Grid to cover its costs, Triad also serves
to incentivise users to limit
consumption during peak periods, thereby easing the need for
investment in the transmission
system. Through Power Purchase Agreements ("PPAs"), energy
supply companies pay flexible generators
of electricity to supply power to local distribution networks
during anticipated peak periods
(both for the power generated and for Triad avoidance), as
their generation reduces demand
on the transmission network. Generators must operate during
each of the Triad periods to be
eligible for payments.
------------------------------- ----------------------------------------------------------------- ------------------
Merchant Power Sales This is simply sales of generated power; when operating with an Energy Suppliers
objective of Triad avoidance,
power is sold under a PPA, typically to a large UK energy
supplier. PPAs are typically of
a 5+ year duration.
------------------------------- ----------------------------------------------------------------- ------------------
**ENDS**
For further information, please visit www.plutuspowergen.com, or
contact:
Charles Tatnall Plutus PowerGen Plc Tel: +44 (0)
20 3705 8350
---------------- -------------------- --------------
Phil Stephens Plutus PowerGen Plc Tel: +44 (0)
20 3705 8352
---------------- -------------------- --------------
Ewan Leggat SP Angel Corporate Tel: +44 (0)
Finance LLP 20 3470 0470
---------------- -------------------- --------------
Laura Harrison SP Angel Corporate Tel: +44 (0)
Finance LLP 20 3470 0470
---------------- -------------------- --------------
Elisabeth St Brides Partners Tel: +44 (0)
Cowell Limited 20 7236 1177
---------------- -------------------- --------------
Hugo de Salis St Brides Partners Tel: +44 (0)
Limited 20 7236 1177
---------------- -------------------- --------------
Notes to Editors
Plutus PowerGen plc is an AIM listed company focused on the
development, construction and operation of flexible stand-by power
generation sites in the UK. At present, the market dynamics for
flexible power generation are positive as a result of the continued
downward pressure on capacity available to National Grid to balance
supply and demand, leading to their announcements about possible
power shortages over the next few years.
Flexible Power generators such as PPG offer a viable and timely
solution to the power capacity shortfall in the UK. To this end,
PPG is initially focusing on delivering 200MW of capacity by the
end of 2017 and currently has a project pipeline of potential
development sites with 700MW of power generation capacity.
PPG has a straightforward multi-revenue stream model with large
and stable counter-parties and is using project/EIS funding through
SPVs to finance construction of the generation assets. This
structure has the benefit of limiting dilution to plc shareholders
as the assets are financed and built.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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